Bitcoin or digital gold has been more and more talked about lately. Unfortunately, we often tend to think that this virtual currency is only intended for experts. Nay! You don’t need to be an expert to use bitcoin. Especially for payment. However, it is imperative to know how it works. Concretely, how to pay in Bitcoin? I simply explain all the steps to follow in this article!
“A technological revolution”, “a new form of gold” or even “a scam”. Bitcoin has, since time, carried several labels. But concretely, what is it? Simply put, bitcoin is the first cryptocurrency (or virtual currency). Created in 2099 by Satoshi Nakamoto, it is a decentralized and dematerialized currency. Its objective is simple: to be a currency solution that only works on the Internet and that does not depend on banking institutions or States.
All operations from bitcoin are added to the tamper-proof register called “the blockchain”. The number of bitcoins in circulation is limited to 21 million units. In 2022, there are nearly 19 million bitcoins in circulation worldwide. Unlike traditional currencies, it is impossible to define the intrinsic value of this virtual currency.
Now that you know what bitcoin is, you wonder what you can actually buy with it. Generally, when talking about bitcoin, the first thing that comes to mind is trading. But know that there are a multitude of products that you can buy with your bitcoin, in your daily life.
Computing and technology are the first two areas that have adopted bitcoin easily. Thus, in large companies such as Apple or Microsoft, payment by Bitcoin is very popular. Whether you go through a physical store or an online store, the method of payment by virtual currencies is accepted in major stores.
You will also notice that many online subscriptions can be paid for with Bitcoin. One of the most classic purchases is VPN subscriptions. By choosing payment by virtual currency, you can be sure to make your browsing more anonymous. You can also buy your subscriptions on the Shopify or WordPress platforms.
The world of video games is also increasingly open to virtual payments. Which allows you to pay for your video games and entertainment with Bitcoin. In addition to buying games, cryptocurrency also allows you to buy characters, skins, trophies, new accessories or even objects.
If you use a virtual wallet, you can pay for your next vacation using Bitcoin. In addition to hotels, most major airlines (such as Air Lituanica, Surf Air or Norwegian) also accept this payment method. Travel platforms like Destinaa or Expedia also allow these consumers to pay with Bitcoin.
Another sector that is increasingly open to digital payment: restaurants. Among the players working in the field, Subway, Burger King, KFC and Starbucks are the first to accept Bitcoin. The implementation is still being done gradually for the moment.
At the moment, there are not yet many clothing companies that accept bitcoin payments. However, you can find a few on the net including: Etsy or Norstrom Rack.
To make a Bitcoin payment, you can go through physical stores or online sales sites. However, before you start, it is important to identify the sites that accept this method of payment to carry out all your transactions. If you are in France, here are different addresses that already offer payment by virtual currency:
For the moment, the physical shops that offer payment by Bitcoin are still few in number (there are nearly 300 merchants who authorize the use of Bitcoin as a method of payment). On the other hand, in the European countries bordering France, this method of payment is already very widespread.
Now that you know that it is possible to pay different service providers with bitcoins, you can take the next step: provide yourself with bitcoins. Buying bitcoin is not as complicated as it sounds. Here are the different ways to buy it:
All bitcoin trading takes place on crypto exchanges. It is on this platform that you can easily exchange fiat currencies for bitcoin (and even other cryptocurrencies). This is, moreover, the most effective technique for making purchases of bitcoins. The price is set according to supply and demand. On some platforms, you can also exchange cryptocurrencies with each other.
On the internet, some neo-brokers also offer the sale of bitcoins. If you already have an account with these providers, all you have to do is make the investment. It is a simple and quick process. Check all the same because with most neo-brokers, you are not “really” the owner of the bitcoins because they remain the property of your broker.
At bitcoin ATMs, you can easily exchange bitcoin with cash, or vice versa. The sum indicated is then automatically transferred to your wallet. To do this, you just need to indicate your customer reference by scanning QR code.
As with most classic currencies, you can also buy bitcoins through individuals who sell them. Each wallet is linked to a unique address. It is therefore sufficient to indicate the address of the recipient and the transfer is done automatically.
Paying with Bitcoin is (contrary to what one might be tempted to think) a quick and easy process. You also have the possibility to choose between different solutions:
This is the simplest solution! In the same way that you made a transfer in euros to supply yourself with cryptocurrencies, you can make the conversion in the other direction: that is to say convert the bitcoin into euros. To do this, you must go through the cryptocurrency platform where you keep your digital assets. Usually, this conversion only takes a few seconds. Once your bitcoin is converted into euros, you can easily make a transfer to your bank account or simply pay the service provider in euros.
Do not forget that bitcoin is a currency! True, virtual, but it can be used like conventional money. It is for this reason that you will find platforms offering “debit card” type bank cards, which you can link with your cryptocurrency. If you cannot take advantage of this type of service, know that it is possible to transfer cryptos from one wallet to another.
As you will have understood, more and more companies are offering this method of payment. You can therefore simply pay directly in crypto, with the merchant who accepts bitcoin. In this case, here are the alternatives available to you:
Most merchants who accept bitcoin payment go through the scanning of a QR code. It is, in fact, the fastest and easiest way to spend your cryptocurrency. Is your wallet on a mobile app? It’s simple, scan the QR code of the item you want to buy! The application will automatically redirect you to the bitcoin payment platform. If you opt for this technique, count a few seconds for the transaction to be validated.
If your wallet is on a computer, you simply have to click on the option “pay in bitcoin” or the equivalent. Immediately, you will be redirected to the payment option. Just check the payment information, confirm the order and you’re done! In case you are not automatically redirected to the payment options, you must copy the seller’s wallet address in “recipient”. Then fill in the amount and validate your payment.
You can also opt for manual payment. To do this, copy the bitcoin address mentioned in the payment window. Paste it in the “send to” or “recipient” field. Then fill in the amount to transfer and validate your payment. When the payment is made, you will be redirected to a payment confirmation.
To carry out your bitcoin transactions, you must plan for a few fees:
As with all traditional transactions, there are also fees to consider if you use bitcoin to make your payments. However, as the fluctuations of Bitcoin are high, the fees are relatively lower. Always inform yourself before initiating the payment.
On some platforms, bitcoin holders may pay commissions for deposits and withdrawals. If so, the amount payable will depend on the amount deposited or withdrawn. The system generally works by percentage.
Of course, all bitcoin transactions require fees on the cryptocurrency platform. These costs are similar to courage costs. These commissions can then be required for the sale or for the purchase. They are usually around 0.1 or 0.35% of the transaction volume.
As you will have understood, payment in bitcoin does not look like traditional online payments. To ensure that these procedures take place in the best possible conditions, here are some tips to take into account:
Please note, once your purchase has been validated, you only have 15 minutes to send your payment by bitcoin. As the price of this cryptocurrency is very volatile, the price displayed is only valid for 15 minutes. So be careful not to exceed this time.
If your wallet is on mobile or computer, the payment may take a few hours to appear. So always remember to follow up your transaction with your seller.
You must always send the exact sum (the one specified in the purchase window). Indeed, your wallet can use a different exchange rate and can therefore influence the final sum in bitcoin. Always check before validating the payment.